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Simple English definitions for legal terms
Severable contract
Read a random definition: Association of American Law Schools
A quick definition of Severable contract:
A severable contract is a type of contract that has different parts that can be considered separate agreements. If one part of the contract is not fulfilled, it does not mean that the other parts are automatically cancelled. This means that if someone does not do everything they promised in the contract, they may still be able to get paid for the parts they did complete. Courts may also use severability to remove parts of a contract that go against the law or public policy.
A more thorough explanation:
A severable contract is a type of contract that contains two or more agreements that are distinct enough to where the unenforceability or breach of one does not nullify the enforceability of the other. This means that if one part of the contract is not fulfilled, the other parts can still be enforced.
For example, let's say a contractor is hired to do two types of work: excavation and grading work on lots and streets, and street improvement work. If the contractor fails to perform the street improvement work, they can still recover payment for the excavation and grading work because the contract is severable.
Severable contracts can also be useful in cases where certain terms of the contract are found to be unenforceable as a matter of public policy. If the contract contains a severability clause, the unenforceable provisions can be severed from the contract, allowing the rest of the contract to remain in effect.
Overall, severable contracts provide flexibility and protection for both parties involved in a contract.